Katapult Announces 1-for-25 Reverse Stock Split of Common Stock
July 11 2023 - 4:45PM
Katapult Holdings, Inc. (“Katapult”) (NASDAQ: KPLT), an
e-commerce-focused financial technology company, today announced
that its Board of Directors has approved a 1-for 25 reverse stock
split (the “Reverse Stock Split”) of Katapult’s common stock, par
value $0.0001 per share (the “Common Stock”). The Reverse Stock
Split was approved by Katapult’s stockholders at the Annual Meeting
of Stockholders held virtually on June 6, 2023. The Reverse Stock
Split will become effective at 5:01 p.m. Eastern Time on July 27,
2023, and the Common Stock will open for trading on The Nasdaq
Stock Market (“Nasdaq”) on a reverse split-adjusted basis on July
28, 2023 under the existing trading symbol “KPLT.”
The new CUSIP number for the Common Stock following the Reverse
Stock Split will be 485859 201. Katapult’s publicly traded warrants
will continue to be traded on the Nasdaq under the symbol “KPLTW”
and the CUSIP number for the warrants will remain unchanged.
At the effective time of the Reverse Stock Split, every 25
shares of Common Stock either issued and outstanding or held as
treasury stock will be automatically reclassified into one new
share of Common Stock. The par value per share of the Common Stock
will remain unchanged at $0.0001.
As a result of the Reverse Stock Split, proportionate
adjustments will be made to the number of shares of Common Stock
underlying Katapult’s outstanding equity awards and the number of
shares issuable under Katapult’s equity incentive plans and certain
existing agreements, as well as the exercise, grant and acquisition
prices of such equity awards, as applicable.
In addition, proportionate adjustments will be made to
Katapult’s outstanding warrants, resulting in: (i) each publicly
traded warrant issued under the Warrant Agreement, dated October
31, 2019, becoming exercisable for 1/25th of a share of Common
Stock at an exercise price of $287.50 per whole share; and (ii) the
warrant under the Warrant to Purchase Stock, dated March 6, 2023,
issued by Katapult to Midtown Madison Management LLC, becoming
exercisable for up to 160,000 shares of Common Stock at an exercise
price of $0.25 per share.
No fractional shares will be issued in connection with the
Reverse Stock Split. Stockholders who would otherwise be entitled
to receive fractional shares as a result of the Reverse Stock Split
will be entitled to receive one full share of post-Reverse Stock
Split Common Stock, in lieu of receiving such fractional
shares.
Continental Stock Transfer & Trust Company is acting as
transfer and exchange agent for the Reverse Stock Split. Registered
stockholders who hold shares of Common Stock are not required to
take any action to receive post-Reverse Stock Split shares of
Common Stock. If a stockholder is entitled to post-Reverse Stock
Split shares of Common Stock, a transaction statement will
automatically be sent to the stockholder’s address of record
indicating the number of shares (including fractional shares) of
Common Stock held following the Reverse Stock Split. Stockholders
owning shares via a broker, bank, trust or other nominee will have
their positions automatically adjusted to reflect the Reverse Stock
Split, subject to such broker's particular processes, and will not
be required to take any action in connection with the Reverse Stock
Split.
Additional information about the Reverse Stock Split can be
found in Katapult’s definitive proxy statement filed with the
Securities and Exchange Commission (the “SEC”) on April 25, 2023,
which is available free of charge at the SEC’s
website, www.sec.gov, and on Katapult’s website
at ir.katapultholdings.com.
About Katapult
Katapult is a technology driven lease-to-own platform that
integrates with omni-channel retailers and e-commerce platforms to
power the purchasing of everyday durable goods for underserved U.S.
non-prime consumers. Through our point-of-sale (POS) integrations
and innovative, mobile app featuring Katapult Pay™, consumers who
may be unable to access traditional financing can shop a growing
network of merchant partners. Our process is simple, fast, and
transparent. We believe that seeing the good in people is good for
business, humanizing the way underserved consumers get the things
they need with payment solutions based on fairness and dignity.
Forward-Looking Statements
The information in this press release includes “forward-looking
statements” within the meaning of the safe harbor provisions of the
United States Private Securities Litigation Reform Act of 1995.
Forward-looking statements generally are accompanied by words such
as “anticipate,” “assume” “believe,” “continue,” “could,” “design,”
“estimate,” “expect,” “intend,” “may,” “plan,” “potentially,”
“predict,” “seek,” “should,” “will,” “would,” or the negative of
these terms or other similar expressions that predict or indicate
future events or trends or that are not statements of historical
matters. Such statements may include, but are not limited to,
statements about the Reverse Stock Split and the timing thereof, as
well as the trading of the Common Stock. These statements are based
on current expectations on the date of this press release and
involve a number of risks and uncertainties that may cause actual
results to differ significantly. Further information on factors
that could cause Katapult’s actual results to differ materially
from the results anticipated by Katapult’s forward-looking
statements is included in the reports Katapult has filed with the
U.S. Securities and Exchange Commission. Katapult does not assume
any obligation to update or revise any such forward-looking
statements, whether as the result of new developments or otherwise.
Readers are cautioned not to put undue reliance on forward-looking
statements.
Contact
ir@katapult.com
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